Chinese ride-hailing giant Didi Chuxing is reportedly considering a possible takeover bid for bike-sharing startup Ofo, as the troubled company struggles to make ends meet.
According to local media, Didi’s preliminary offers value Ofo at $1.5 billion – around half what food-delivery platform Meituan paid to acquire Ofo’s key rival Mobike. Didi already holds a minority stake in Ofo.
Alibaba-backed Ofo has recently faced financial troubles in a fiercely competitive marketplace, where it has run through vast sums of money to stay ahead. According to the Financial Times, Ofo’s monthly expenditure is as high as $25 million.